UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 38674 / May 27, 1997
ADMINISTRATIVE PROCEEDING
File No. 3-9314
:
In the Matter of : ORDER INSTITUTING PROCEEDINGS
: AND OPINION AND ORDER PURSUANT
ARTHUR A. GRAVES, III, : TO RULE 102(e) OF THE
: COMMISSION'S RULES OF PRACTICE
Respondent. :
:
I.
The Securities and Exchange Commission ("Commission") deems it
appropriate and in the public interest that public administrative
proceedings be, and they hereby are, instituted pursuant to Rule
102(e)(3)(i)(A) of the Commission's Rules of Practice, 17 C.F.R.
201.102(e)(3)(i)(A), against Arthur A. Graves, III ("Graves").
II.
In anticipation of the institution of these administrative
proceedings, Graves has submitted an Offer of Settlement which the
Rule 102(e)(3) of the Commission's Rules of Practice,
17 C.F.R. 201.102(e)(3), provides, in pertinent part:
The Commission, with due regard to the public
interest ... may ... suspend from appearing or
practicing before it any, attorney ... who ... has
been by name ... [p]ermanently enjoined by any
court of competent jurisdiction, by reason of his
or her misconduct in an action brought by the
Commission, from violating or aiding and abetting
the violation of any provision of the Federal
securities laws or of the rules and regulations
thereunder ... A person who has consented to the
entry of a permanent injunction ... without
admitting the facts set forth in the complaint
shall be presumed for all purposes under this
paragraph (e)(3) to have been enjoined by reason
of the misconduct alleged in the complaint.
Commission has determined to accept. Solely for the purpose of these
proceedings and any other proceedings brought by or on behalf of the
Commission or in which the Commission is a party, and prior to a hearing
pursuant to the Commission's Rules of Practice, 17 C.F.R. 201.100 et
seq., and without admitting or denying any findings set forth herein,
except as to jurisdiction, and facts set forth in paragraphs III. A. and B.
below, which he admits, Graves consents to the issuance of this Order
Instituting Proceedings and Opinion and Order Pursuant to Rule 102(e) of
the Commission's Rules of Practice and to the entry of findings and
imposition of the remedial sanctions as set forth below.
III.
On the basis of this Order and Graves' Offer of Settlement, the
Commission finds that:
A. At all times relevant hereto, Arthur Graves was an attorney
licensed in the State of California.
B. On April 25, 1997, Graves was enjoined, on consent, by the
United States District Court for the Central District of
California from violations of Sections 5 and 17(a) of the
Securities Act of 1933, Section 10(b) of the Securities Exchange
Act of 1934 and Rule 10b-5 thereunder in the action entitled SEC
v. Broadcast Associates - I, et al., CV-96-0252 WJR (ANx).
C. The Commission's Complaint in the action described in
paragraph III.B. above alleges that from in or about November
1992 through the time that the Commission's Complaint was filed
in January 1995, Graves and other defendants committed fraud in
violation of the federal securities laws by engaging in a scheme
to market unregistered securities in the form of investment
contracts in "wireless cable" television ventures, through the
use of materially false and misleading statements and omissions.
IV.
Based on the foregoing, the Commission deems it appropriate and in the
public interest to accept the Offer of Settlement submitted by Graves, and
accordingly,
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IT IS HEREBY ORDERED, effective immediately, that Graves is denied the
privilege of appearing or practicing before the Commission as an attorney.
By the Commission.
Jonathan G. Katz
Secretary
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